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Forex - Dollar holds steady vs. rivals in quiet trade

Published 24/05/2017, 13:16
Dollar index little changed ahead of Fed meeting minutes
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Investing.com - The dollar held steady against other major currencies in quiet trade on Wednesday, as investors awaited the minutes of the Federal Reserve’s latest policy meeting due later in the day.

EUR/USD edged up 0.10% to 1.1194, off Tuesday’s six-month high of 1.1268.

The greenback regained some ground as investors turned their attention to the upcoming minutes of the Fed’s most recent policy meeting, with hopes of further indications on the pace of future rate hikes.

The U.S. dollar had broadly weakened recently following a string of revelations surrounding the FBI’s investigation into alleged Russian interference in November’s U.S. presidential election and reports that Donald Trump attempted to interfere with the judicial process.

Elsewhere, GBP/USD was little changed at 1.2966.

Investors were also still digesting the Manchester terrorist attack that killed 22 people on Monday evening.

USD/JPY held steady at 111.81, while USD/CHF was little changed at 0.9762.

The Australian dollar was also steady, with AUD/USD at 0.7478, while NZD/USD gained 0.36% to 0.7036.

Earlier Wednesday, the Australian Bureau of Statistics said construction work done fell 0.7% in the first quarter, disappointing expectations for a 0.2% slip.

Meanwhile, USD/CAD slipped 0.10% to trade at 1.3499 as traders were eyeing the Bank of Canada’s interest rate decision due later in the day.

Also Wednesday, Moody’s downgraded China’s credit rating for the first time in almost three decades.

Moody’s warned that China’s financial strength is likely to deteriorate in the coming years, as its economy slows and its national debt keeps rising.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 97.21.

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